Insuring Your Rental Property

Insuring Your Alabama Rental Property

Art Glasgow, Peck-Glasgow Insurance

 

Insuring your Alabama rental house has become a much harder task during the last several months.  What has happened and why is it now so difficult?  Those are questions that our agents are receiving on a daily basis.  While there are many reasons, basically rental houses are becoming harder to insure due to market conditions and past lost history of this line of business.

 

More and more company’s are declining to insure rental houses and some companies are even non-renewing policies and pulling completely out of this once desirable line of insurance business.  T*heir reasons may vary, but over the last few years this line of business has become wildly unprofitable.  Storm losses seem to have become the annual norm, with souring repair costs.  As a result, stricter underwriting and higher premiums seem to be the norm.

 

When looking for rental house coverage, please be prepared to discuss coverage with your agent and probably additional lines of business.  More and more companies are requiring your to insure your personal home and auto with them in order to insure the rental house. 

 

In order to insure your rental house with one to four units, you need to cover:

•   your rental dwelling and other structures on the premises
•   your personal property at the rental dwelling
•   fair rental value and additional living expense, should covered damage make all or a portion of your rental dwelling unfit for normal use

 

You may add personal liability and medical payments coverage to protect you in the event another person is injured on your rental property.

 

The best place to review your coverages is with an Independent Insurance Agent that represents multiple insurance carriers and has options for you.  Peck-Glasgow Insurance agents review your insurance needs and provide options best suited for your individual needs.